India to address volatility in rupee against the dollar

REUTERS: India is trying to “address volatility” in the Indian rupee that has tumbled to record lows against the dollar in recent weeks, a government official said yesterday, amid concerns of widening trade deficit and sell off by foreign investors.

India will try to smoothen the volatility in rupee markets, even as the country is facing “current account headwinds,” due to rising commodity prices, the official, who did not want to be named, told reporters.

India’s macroeconomic fundamentals remain strong and it will stick to the 6.4 percent fiscal deficit target for 2022/23 that started on April 1, the official said.